|
|
|
You can get e-magazine links on WhatsApp. Click here
|
|
|
|
|
|
Govt allows duty-free import of food processing equipment
|
|
Saturday, 20 January, 2007, 08 : 00 AM [IST]
|
|
Sabyasachi Samajdar, New Delhi
|
has been growing at an average rate of 15 per cent for the last few years. Imports currently account for less than 5% of the total food-processing equipment market. Imported state-of-the-art equipment is much more expensive than locally available products but they offer significant benefits in terms of yield recovery, lower maintenance and better quality output, say industry sources.
According to industry estimate, the import market for food-processing equipment is growing at approximately 30% annually, fuelled by the need for quality equipment and services as a result of increased demand for quality processed food.
Recently, imports from the US represented 30% of the total imports of food equipment into India. Other major suppliers include Sweden, Japan, Korea, Switzerland, Germany, France and Italy.
Food-processing equipment can be freely imported into India without any restrictions, including the import of second hand machinery in the food-processing sector. Import duty on food-processing equipment has been substantially reduced over the last few years and export linked duty free imports of equipment are also allowed. Food-processing industry is one of the thrust areas identified for exports by the government of India. Exclusive agro export processing zones (EPZ) have been set up with all infrastructure and food-processing units under EPZs are allowed duty-free import of equipment.
Major foreign equipment manufacturers supplying the Indian market are Alfa Laval of Sweden, Tetra Pak India Private Ltd and Buhler India Pvt Ltd of Switzerland, Schaaf Asia Pvt. Ltd of Germany, and Cryovac India Pvt. Ltd of the U.S. Some major domestic food processing equipment suppliers include B. Sen Barry & Co., Dr. Froeb India Pvt. Ltd, CS Aerotherm, Continental Bakery Machines & Allied Products, Baker Enterprises, Indopol Food Processing Machinery Pvt. Ltd, Mittal International, PRS Technologies and Relief India among many others.
According to Industry sources, food-processing machinery for meat, poultry, and seafood is the fastest growing segment and the demand will continue to increase for the next few years.
The government of India has projected investments worth $ 19.6 billion in the food-processing sector over the country's 10th five-year plan period (2002-2007). Investments during the ninth plan period in the food-processing sector were approximately $ 8.19 billion. Investments in food and beverage manufacturing units are on an increasing trend, helping to stimulate demand for imported food-processing equipment.
Also, the government of India has reduced import duties and excise duties on imported food processing machinery and equipment in the last budget. It is expected that the Finance Ministry will further reduce taxes and import duties on the equipment this year.
|
|
|
|
|
|
|
|
|
|